Choosing bookkeeping software can be a difficult task for businesses, especially if your technical or accounting knowledge is only minimal. It can certainly seem a bit confusing, and with the number of products available, it can be overwhelming trying to discover the right one for you.
However, with a straightforward and commonsense approach, you can get the bookkeeping software you need without spending a fortune or paying for software you don’t know how to use. Simply use the following easy steps to determine the type of software you need, and then choose a software solution that can take the pain out of bookkeeping for your business.
Ask Your Bookkeeper or Accountant
Before we even go into the different types of bookkeeping software and the features you can expect, it’s worthwhile considering asking your accountant or bookkeeper for advice. This is not only helpful to find out what a professional recommends for you, but it may also help make any tax or bookkeeping transactions a lot easier.
If you are using compatible software when it comes time to make financial reports or prepare your business tax, it will be one less headache to worry about. Plus your accountant or bookkeeper will be able to work quickly and efficiently with a system they know. In case that’s not enough, you will likely be able to call them for advice if you have any problems when you try to use the software.
Cheap Bookkeeping Software
Cheap bookkeeping software might not have all the features you will get with the more expensive offerings, but for many small businesses, it will have all the tools and requirements you need. In many cases, you may find cheap bookkeeping software easier to use with a simplified and straightforward system of operation.
Naturally, things like technical support, training and customisation will naturally be limited. You will typically find a standard set of ledgers that offer you the ability to manage quotes, invoices and payments along with some other handy tools. You may even be able to access tools that allow you put together budgets and business plans.
If your bookkeeping is relatively straightforward, then some quality but cheap bookkeeping software may suit you.
High-End Bookkeeping Software
Leaning towards the mid- to high-end bookkeeping software packages, your options in terms of features, functionality and flexibility all grow. You will be spending more money, so you will really want to research and perhaps even trial software before you make a purchase.
Apart from a greater range of reporting and analysis tools for managing you income and expenditures, you can also expect features such as online updates for things like tax information, technical support and a range of connectivity option. You may be able to manage bank accounts online, and sometimes companies will even offer services such as online back-ups for your data and similar services.
You may choose to install this software when you have a bookkeeper or accountant under employment in your workplace, or for when business operations are diversifying and it simply becomes more complicated to manage your finances.
We hope this quick guide to bookkeeping software has helped you take the next step towards an informed decision for your bookkeeping software
Features To Consider In Bookkeeping Software
- Training and support
- Online updates
- File support such as PDF
- Compatibility with your accountant’s software
- Online banking or trading
- Government and reporting connectivity
- Custom invoices and designer options